What type of insurance provides coverage based on a multiple of an employee's salary in the case of death?

The type of insurance that provides coverage based on a multiple of an employee's salary in the case of death is death-in-service life insurance. This insurance is specifically designed for employees and offers a payout to their beneficiaries if the employee passes away while employed, often calculated as a multiple of their annual salary, typically ranging from two to four times the salary. This benefit is usually provided as part of an employee's benefits package, ensuring financial support to their dependents at a critical time.

In contrast, accidental death insurance focuses solely on deaths resulting from accidents, rather than providing coverage based on salary. Term life insurance covers a policyholder for a specific period and pays out only if the insured dies during that term without linking the payout amount to their salary. Whole of life insurance offers lifelong coverage and builds cash value over time, but similarly does not relate the benefit to an employee's salary, as it is a permanent policy intended for long-term financial planning.

Thus, death-in-service life insurance is unique in its direct tie to an employee's earnings and the specific context of employment, making it the correct answer for this question.